º Price Floors?
Price floors, like price ceilings, are an attempt by the government to maintain prices at other than equilibrium levels.
whereas a price ceiling prices a legal maximum on prices, a price floor places a legal minimum.
A binding price floor causes a surplus. In case of a price floor, some sellers are unable to sell all they want at the market price.
By co
prices in an attempt to capture more of the market.
조작 : 시장을 장악하기 위해 가격을 낮춤으로써 카르텔(기업연합)의 협정을 어기는 것
55. Circular flow of income : The idea that the expenditures of one group are income for other groups. The income is then spent to create income for still other groups.
수입의 순환 : 한 그룹의 지출은 다른 그룹
elastic exchange rate fluctuation can be possible.
The range of difference from the exchange rate standard is decided wider than -+1%.
• Crawling peg
An exchange rate regime usually seen as a part of fixed exchange rate regimes which allows depreciation or appreciation in an exchange rate gradually.
Some central banks use a formula which triggers a change when certain conditions are
1. Introduction
While the nation is the 15th largest in the world in terms of nominal Gross National Product, it is the number 10 in electricity consumption According to the CIA World Factbook’s 2009 report. ~
the own-priceelasticity of demand more simply referred to as priceelasticity of demand,
the priceelasticity of demand is Measuring how much quantity demanded changes sensitive to price change.
Adding “own” is the concept managers use to measure the price of demand for a product or service produced by their firm
This value puts % Change in Price on denominator and put % Change in Quantit
Price discrimination (1, 2, 3 degree)
- Strategic price setting (Many kinds)
(Optional product, Bundling, etc…)
2) Expand demand
■ Effect of expand demand
- Set higher P & Sell more Q
■ Representative method
- Advertisement
3) Cost managemant
■ Effect of expand demand
- Set lower P & Sell more Q
■ Related with elasticity
- More elastic priceelasticity of d
to the priceelasticity of demand in salt, since the salt is inelastic we can realize the fact that the less the elasticity, the more the gravity of advertizing in revenue according to
So, Adverting is indispensible in the domestic salt market and now many companies are trying to make an effort to diversify products and prices. There are examples as bellow.
Diversifying prices
LNG사업은 생산 - 수송 - 소비의 과정이 유기적으로 연결되어 부가가치를 창출하는 사업구조를 지니고 있음 Integrated Value Chain
세계 천연가스 가채 매장량은 179.83 TCF (Trillion cubic meters) : equivalent to 131 Billion Ton LNG & 162 Billion TOE
매장량 풍부 - 가채년수 (Reserve/Production Ratio) : 65년 (cf. 석유 – 41년)
Ⅲ. Third-degree Price discrimination
Third-degree price discrimination occurs when the monopolist determines the different price for the same production. If two different markets exist in the same production, the monopolist sets the different price according to the elasticity of the markets.
In other words, it means that the monopolist set a low price in the market which has the high-elast